SmallCapFirm
Today's New Profile (PURA) Has Analyst $.35 Price Target
*Major News All Week Puts This Stock In The Limelight*
September 26th
Good Morning,
The morning is here and the markets open shortly. Let me ask, what do you know about Can*na*bis (CB) infused beverages?
If it isn't much, that's okay, but I'm going to let you in on a little tip... It's time to educate yourself!
CB-infused drinks could become THE disruptors of the beverage industry.
Between the passing of the 2018 US Farm Bill, and the idea of using it as a potential health supplement, hemp-derived CB has witnessed an explosive growth in consumer interest over the past few years.
*2019 & Beyond... CB Sales Growth Looks BIG*
Recreation and medical CB sales are posed to skyrocket. Some predictions show sales to be in the neighborhood of $11.7Bn this year with potential growth to $25Bn in 7 more years.
Now, compare those figures with the $38Bn in U.S. beer sales last year. You can understand why both established beverage companies and beverage entrepreneurs are taking a closer look at methods and formulas for infusing CB into beverages.
The new profile I'm bringing to your attention for today is already receiving serious notoriety for their CB-infused energy water that is making the rounds.
And just this week, they dropped potentially game-changing news regarding their new tea, TranquiliTeaCBD.
This company is making moves. That's why you need to get 9/26's breakout idea, Puration, Inc. (PURA), on your radar as they have a load of catalyst news this week.
*PURA's Monster Sales Making Serious Noise*
Last year (2018), PURA produced over $1Mn in CB beverages in the United States.
In only 6 months of 2019, Puration is reporting over $1Mn in CB beverage sales. That's 87% growth over the first six months of sales in 2018.
Talk About A Giant Leap!
Targeting $4Mn in 2019 sales, PURA doesn't appear to want to take the foot off the gas.
When it comes to companies producing CB-infused products, Puration is not one to sleep on. Just look at all the news they are flinging at us this week!
Additionally, just yesterday, these sales figures have allowed Rob Goldman, of Goldman Small Cap Research, confidence to provide this stock with a spectacular $.35 price target.
Holy Moly...
From yesterday's closing trading level (approx. $.0849), PURA could be packing potential upside of almost 312%!
*312% Potential Upside May Be The Cards?*
From the $.0849 valuation, PURA may actually represent a stock with 312% in upside potential!
Now, here's why $.35 could become a stunning reality while only in the short-term...
Company Catalyst #1. Demand Is So Strong, PURA Opened a 2nd Plant.
PURA has been contending with an enviable problem; demand is high and growing but production has not kept up. The new capacity utilization should essentially double its previous production capability.
Company Catalyst #2. PURA Is the Best Positioned CB-infused Provider.
Much has been made of the recent FDA comments regarding CB-infused products. (More on that later.) In the meantime, the bulk of PURA sales are in the South/Southwest regions. This is key because some southern states are designing their own regulatory guidelines to foster sales, potentially bypassing the FDA. These events should put also pressure on the FDA to act.
Company Catalyst #3. The NOUV Dividend Transaction Is a Sweetener.
The NOUV transaction is a very good deal for PURA shareholders, and upon completion adds meaningful value to PURA’s stock. Based on the current market cap, we believe PURA’s current share price does not reflect this hidden value.
Company Catalyst #4. Sales Estimates Likely Too Low; M&A on the Way?
Given the big increase in production capacity, sales projections for 2019 could be low and sales growth next year could be further bolstered by M&A—which would leverage PURA’s early mover infrastructure, sales, and its current formulation advantages. A critical mass of sales from M&A could in turn make PURA a future buyout candidate, once all of the FDA’s future CB-related guidelines are implemented.
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*PURA's Recent Uptick Signals Bigger Move?*
Towards the end of last week, PURA announced a multitude of press releases would be unleashed through this current week. At the moment that happened, this stock started to grow rapidly.
Since the announcement, daily shares traded averages have grown significantly, while PURA's PPS rushed 110.42% from an open of $.047 on 9/17 to Tuesday's high of $.0989.
Triple-digit short-term moves are nothing to ignore. I mean, just check out the potential on PURA's smoking hot chart:
